An Experimental Examination of the Effects of Decision Mode and Instrumental Commitment on Budgetary Slack Creation.

This study examines how instrumental commitment affects the creation of budgetary slack in a collective decision-making environment. Using a two (decision mode: individuals vs. teams) by two (instrumental commitment: commitment vs. no commitment) experimental design we examine the effects of instrumental commitment on budgetary slack creation of individuals and teams. The results show that instrumental commitment interacts with decision mode to affect budgetary slack creation. Teams without instrumental commitment created the highest budgetary slack (54%) and individuals with instrumental commitment created the lowest budgetary slack (5%). Teams without instrumental commitment differed significantly from teams with instrumental commitments, individuals with instrumental commitment, and individuals without instrumental commitment. Individuals with instrumental commitment also differed from individuals without instrumental commitment.